Commentary

Wednesday, August 2, 2017

Treasury Secretary on the State of the Global Financial System

Mnuchin Briefs Congress on his Marching Orders

Author: David Schwartz J.D. CPA
On July 27, 2017, Treasury Secretary Steven Mnuchin delivered the Department of the Treasury’s annual report on the state of the international financial system. Mnuchin’s testimony covered many topics ranging from the Volcker Rule to tax reform and China equity caps. The hearing was sometimes contentious, with Rep. Maxine Waters (D-CA) sparring with Secretary Mnuchin over his apparent failure to respond to letters of inquiry from Waters. Despite the fireworks, Mnuchin laid out...
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Categories: All, Change Overview and Rationale, Formal Regulatory Remedies

Tags: Reconsideration

Wednesday, July 26, 2017

There is No Room for Complacency

French Central Banker Outlines Priorities to Complete Post-Crisis Reform

Author: David Schwartz J.D. CPA
In a July 12, 2017 address before the Paris Europlace International Financial Forum, François Villeroy de Galhau, Governor of the Banque de France, outlined what he sees is necessary to complete the work of financial regulatory reform. Noting that resilience of the global financial system has significantly improved in eight years as a result of sweeping regulatory changes, de Galhau urged regulators and central bankers not to be complacent. There is work yet to finish on the new...
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Categories: All, Change Overview and Rationale, Formal Regulatory Remedies

Tags: Reconsideration

Sunday, July 16, 2017

Securities Finance Faces 'Fickle' Future

EU Central Banker Raises Liquidity and Collateral Concerns

Author: David Schwartz J.D. CPA
In a June 21, 2017 address before the 26th Annual Securities Finance and Collateral Management Conference in Berlin, Deutsche Bundesbank Board Member Professor Joachim Wuermeling warned that the securities finance sector faces some unique liquidity and collateral challenges. In particular, he noted that the extraordinary measures taken by central banks to shore up liquidity in the years since the financial crisis may be distorting liquidity and affecting collateral quality in...
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Categories: All, Change Overview and Rationale, Formal Regulatory Remedies

Tags: Reconsideration

Monday, July 10, 2017

Fed Reports Post-Crisis Regulation Affecting Bond Market Liquidity

Affects are real, but do not not point to any substantial impairment in liquidity.

Author: David Schwartz J.D. CPA
In its semi-annual Monetary Policy Report submitted to Congress on July 7, 2017, the Federal Reserve Board indicated that regulatory reforms since the global financial crisis "have likely altered financial institutions' incentives to provide liquidity.”  The Fed found that In recent years, market participants have been particularly concerned with liquidity conditions in the corporate bond market. This concern stems from the tendency for bonds to be traded less...
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Categories: All, Change Overview and Rationale, Formal Regulatory Remedies

Tags: Liquidity

Friday, July 7, 2017

Deglobalizing or Reglobalizing?

Are Global Banks Pulling Back or Expanding Their Cross-border Connections?

Author: David Schwartz J.D. CPA

On June 30, 2017, the Bank For International Settlements (BIS) published the results of a study examining trends in bank deglobalization since the financial crisis. Prompted by data indicating a decline in cross-border activity by banks, the BIS launched a study to determine whether the data support the hypothesis that the largest global banks have truly scaled back their cross-border activity since 2007, or whether it might be an indicator of some other trend.

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Categories: All, Change Overview and Rationale

Tags: BIS, cross-border

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Journal Commentaries

 

Keep Regulation Functional (October 2008)

CSFME’s Executive Director Ed Blount interviews SEC Chairman Chris Cox.
American Banking Association Banking Journal
https://www.questia.com/library/journal/1G1-187494664/keep-functional-regulation-how-financial-regulation

 

The Bear Market Posse, or Counterparty Risk Management during the Recent Turmoil (Sept.  2008)

by Ed Blount
The RMA Journal, v91n1, 28-32, 5 pages Sep 2008.

 

Searching for New Paradigms at BIS (July 2008)

by Ed Blount
Unexpected deficiencies in bank capital after recent market turmoil has regulators rethinking aspects of Basel II and “value at risk.”  
American Banking Association Banking Journal  
https://www.questia.com/library/journal/1G1-181991450/searching-for-new-paradigms-at-bis-market-turmoil

 

Will Basel II Affect The Competitive Landscape? (September 2003)

By Ed Blount
Newly elected Basel Committee Chairman Caruana, Governor of the Bank of Spain, gives his views on the revised Basel capital accord, relative to its potential effects on competition and risk management in banking markets.
American Banking Association Banking Journal
https://www.questia.com/read/1G1-108008773/will-basel-ii-affect-the-competitive-landscape-the​